Hyundai Motor Co (005380.KS) unveiled its first electric sedan, the Ioniq 6, on Thursday in an effort to gain a larger portion of the electric vehicle (EV) market, which is currently dominated by Tesla Inc. Hyundai Motor Co is a South Korean carmaker.
The Ioniq 6 is one of more than 31 electric cars that the Hyundai Motor Group, which consists of Hyundai Motor, its sister business Kia Corp (000270.KS), and premium brand Genesis, wants to release by 2030 in order to ensure a market share of 12 percent for EVs worldwide.
In order to go head-to-head with Tesla’s best-selling Model 3 sedan, Hyundai’s sedan will increase its electric vehicle range past that of its current crossovers and SUVs. According to market researcher SNE Research, Hyundai and Kia were already the second-largest EV shippers outside of China in January to May of this year, with a combined 13.5 percent market share, trailing only Tesla at 22 percent.
“The Ioniq 6 will be able to compete with Tesla in the volume EV sedan sector, considering its competitive pricing and long driving range,” said Lee Jae-il, an analyst at Eugene Investment & Securities.
For the South Korean market, the Ioniq 6 will cost between 55 million won ($41,949.51) and 65 million won. Due to multiple price increases by Tesla, the Ioniq 6 may benefit from its pricing in the EV sedan market, he continued.
According to Hyundai, the electric sedan will have a range of roughly 610 kilometers (380 miles), which is about 30% more than the Ioniq 5 crossover
“We are using the same (battery) cell chemistry but … we maximised the amount of batteries per each pack, enhancing energy density significantly,” said Kim Yong Wha, an executive vice president at Hyundai.
Production will start at Hyundai’s Asan facility in South Korea later this year and will be available in two battery pack sizes: 53 kWh and 77.4 kWh. The Ioniq 6 will be offered in South Korea this year, and the introduction of the American market is anticipated for the first quarter of 2019. Hyundai announced that starting in 2019, the Ioniq 6 would use batteries from LG Energy Solution (373220.KS), SK Innovation (096770.KS), and SK On.